News July 20, 2016

Commercial Simulcast Matter resolved, artists benefit

Former Editor

Following an almost seven-year legal battle, thousands of Australian artists will now be remunerated by commercial radio broadcasters for their recordings streamed online.

A copyright tribunal hearing was conducted during 2015/16. The parties involved were Phonographic Performance Company of Australia (PPCA) – which represents thousands of Australian artists and many thousands of labels including the big three: Sony, Warner and Universal – and Commercial Radio Australia (CRA).

PPCA had been battling for recordings streamed online by commercial stations (aka simulcast) to be given the same consideration and rights as every other content industry in Australia. PPCA’s victory means commercial radio broadcasters will pay simulcast licence fees either based on a percentage of their revenue or a per stream rate.

“This is an important step in ensuring that labels and Australian recording artists receive a fair return for the online use by commercial radio stations of their valuable creative work,” said PPCA CEO Dan Rosen. “The Copyright Tribunal has recognised that artists and labels deserve payment – just as other content industries do – each time their work is used commercially online.”

PPCA and CRA’s legal conflict dates back to 2009 when PPCA requested an update to the licence model for commercial radio simulcasting. The conflict saw the two parties work through a Federal Court Case, an appeal to the Full Federal Court, a High Court review, Government inquiries, a boycott (where regional commercial stations switched off their online simulcasts for almost 10 months from January 2014), lobbying campaigns to four separate Communications Ministers, until last week’s final Copyright Tribunal decision.

CRA had long claimed that paying the record industry for a simulcast licence would be ‘double dipping’, as it would be paying the fee on top of existing broadcast fees. Meanwhile PPCA had long requested a pay per stream model, putting them in line with digital services like Spotify and Pandora. Last week’s ruling for the new licence scheme gives local commercial broadcasters the choice between a per-stream fee ($0.0059) or a percentage of revenue model (based on the station’s music use).

PPCA and CRA will work together on implementing the new scheme.

In a statement emailed to TMN, CRA CEO Joan Warner said: “The industry is pleased that we can now move forward in a constructive manner.”

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